Venezuela's Bolivar Faces Depreciation Challenge

Venezuela's bolivar reached its weakest level this year, closing at 40 per dollar. The government had maintained an artificial exchange rate at 36.5 bolivares to combat inflation, investing billions into the economy. Analysts anticipated a necessary correction, which began with the recent depreciation.

Venezuela's bolivar currency depreciated to its weakest level this year, closing at 40 per dollar, central bank figures reveal.

The government had kept the exchange rate fixed at 36.5 bolivares to the dollar since January, injecting billions to counter inflation in the struggling nation.

Analysts had predicted an inevitable correction, which began this week as the currency depreciated.

(With inputs from agencies.)